More pension savers want to exclude oil
New analysis1 has revealed an increase in the number of pension savers who would like to see the oil sector completely excluded from their pension investments, up from 15% in 2022 to 21% in 2023. Of the remaining 79%, almost half said they would only continue to invest in this sector if companies show a concrete commitment to cutting greenhouse gas emissions and improving their environmental impact. Alongside oil, investors were also concerned about companies contributing to deforestation and habitat destruction, predatory lending, and investments in alcohol and gambling.
With COP28 kicking off in the United Arab Emirates on 30 November it will be interesting to hear further views on this from the pension and investment industry and groups such as the Net-Zero Asset Owner Alliance, plus the intentions of the oil sector in committing to net zero.
Artificial Intelligence (AI) to be regulated
AI is having an impact on almost all areas of life, including financial services. With the government calling on the UK to be the global hub of AI regulation, the Financial Conduct Authority (FCA) has announced its intention to regulate critical third parties, including AI services, for the UK financial sector. Commenting on the FCA’s role, Nikhil Rathi, FCA Chief Executive said, “While the FCA does not regulate technology, we do regulate the effect on — and use of — tech in financial services.”
He added, “As the Prime Minister has set out, adoption of AI could be key to the UK’s future competitiveness – nowhere more so than in financial services.”
1PensionBee, 2023
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.